Skyteam
http://admin.travelmole.com/images/stories/2009/images/coronavirusaiport1(3).png

Published on Thursday, January 30, 2020

Qantas CEO: Coronavirus could put some Asia airlines out of business






The coronavirus crisis could spell the end for some of the less financially secure airlines in Asia.


A prolonged outbreak could send some carriers with paper-thin margins spiralling into debt that they may not recover from.


Qantas group CEO Alan Joyce said there are many airlines with heavy exposure to the China market that could suffer.


"A lot of airlines may not be able to keep some of these operations going. It's survival of the fittest," said Joyce.


"A lot of them have huge growth and not much profitability. Things like this can have an impact on these models."


However Joyce said it is still too early to tell what the full impact will be.


"When we look at what happened around Sars, it impacted us by $55 million back in 2003. It meant we did cut back on some international capacity but it rebounded very fast."


Overall, Sars cost the global economy about US$40 billion, but the China travel market has grown about eight times as big since then.


It has already heavily affected other tourism-reliant sectors such as hotels and retail, as well as the lucrative Macau gaming market.


During Sars, Asia-Pacific carriers lost about US$6 billion in revenue but the industry has changed significantly since then.


There are substantially more low cost carriers which typically operate on thin margins, and many of these have gone all-in on the fast growing China market.


 


 

Story Image



Your Comments

, be the first to post a comment.
Your email:






Email other comments made to this story


NOTE: Comments are subject to admin approval before being posted.

What is GoodtoGo? | Submission Form

GoodtoGo - Friday, March 27th
UK Special Edition
USA Special Edition
Asia/Pacific Special Edition

GoodtoGo - Friday, March 20th
UK Special Edition
USA Special Edition
Asia/Pacific Special Edition

GoodtoGo - Friday, March 13th
UK Special Edition
USA Special Edition
Asia/Pacific Special Edition

Mole Poll
Should cruising be banned in Asia until COVID-19 is under control?
yes 53.13 %
no 46.87 %

Thank you for your vote


LATEST MOLES' PODCAST

Centara Reserve, their first luxury resort, to open in Samui December 2020

Active Adventurers, Cultural Explorers, and Wellness Seekers in the Emirate of Ras Al Khaimah

Clearwater Marine Aquarium talks about Rescue Rehab Release and the future of Marine Life

Dana Young CEO and President of @visitflorida

The Mole talks to Mal Barrit the MD of @traveltek about expansion, tech and strategy

UPCOMING EVENTS
\m